News & Events

Continued solid organic and acquisitive growth drive profits up

02 Jul 2009

NCC Group plc (LSE: NCC, “NCC Group” or “the Group”), the independent information security assurance group, has reported its final results for the year ended 31 May 2009.

Highlights

Financial

Group revenue up by 31% to £46.8m (2008: £35.7m)
Group adjusted operating profits* up by 19% to £12.7m (2008: £10.7m)
Group adjusted pre tax profits* up by 17% to £12.3m (2008: £10.5m)
Cash conversion ratio up to 140% of operating profits (2008: 122%)
Adjusted fully diluted earnings per share* up 17% to 26.1p (2008: 22.4p)
Total dividend up 32% of 9.25p (2008: 7.00p)
Net debt at year end £5.6m – expected to be net debt free by August 2010

Operational

Group Escrow maintained strong organic revenue growth of 13%
Assurance Testing now firmly established as UK’s largest independent information security business
Two acquisitions completed and integrated
- Next Generation Security Software (NGS), an Ethical Security Testing business in November 2008
- Escrow Europe Switzerland acquired the remaining 76% in May 2009, further strengthening Group’s position as the world’s largest software Escrow provider

Outlook for 2009/2010:

Group Escrow renewals forecast to be £14.9m (2009: £13.6m)
Group Escrow verification order book £2.0m (2008: £2.0m)
Assurance Testing order book, including Consultancy, £9.4m (2008: £7.1m)
Site Confidence monitoring renewals forecast to be £4.1m (2008: £3.8m)

* Operating profit is adjusted for amortisation of acquired intangibles of £1.2m. Pre tax profit is adjusted for this item and the unwinding of the discount on the acquisitions deferred consideration of £0.2m.

Rob Cotton, NCC Group Chief Executive commented:

“We have delivered our strongest performance to date against a backdrop of economic and worldwide financial downturn and uncertainty. We have continued to develop and grow in the face of this adversity and delivered solid and consistent organic growth, complemented by the acquisitions completed over the last few years.

“The fundamentals of our business remain strong and attractive; substantial recurring revenues, good cash generation and a focus on the faster growing IT services segments.

“We have started this year in a very strong position which has given us considerable confidence in our ability to deliver further sustainable growth.”

To view the Preliminary Results click here.

To view the Preliminary Results Presentation click here.

Enquiries:
NCC Group plc
Rob Cotton, Chief Executive - 0161 209 5200
Paul Edwards, Group Finance Director - 0161 209 5200

College Hill
Adrian Duffield - 020 7457 2020

Category: Latest News